Self-Employment Tax Calculator
Calculate your self-employment tax (Social Security + Medicare) and total federal tax bill as a freelancer or independent contractor.
$
$
$
$
$
Total Tax Liability
$0
SE Tax (15.3%)
—
SE Tax Deduction
—
Federal Income Tax
—
Effective Total Rate
—
Tax Breakdown
Estimate only. SE tax is calculated on net earnings after business expenses. Quarterly estimated payments are typically required. Consult a tax professional for complete self-employment tax planning.
Advertisement
Understanding Self-Employment Tax
Self-employed individuals pay both the employee and employer share of Social Security and Medicare — totaling 15.3% on 92.35% of net self-employment income. This is often a shock to new freelancers who only planned for income tax. Use our quarterly tax calculator to plan your estimated payments.
- SE tax applies to 92.35% of net income, not 100%. The IRS allows you to reduce SE earnings by 7.65% before calculating the 15.3% tax — this mirrors the fact that employees do not pay FICA on the employer's matching contribution. On $80k net income, SE tax applies to $73,880.
- You can deduct half of SE tax from income tax. The employer-equivalent portion of SE tax (7.65%) is deductible as an above-the-line adjustment, reducing your federal income taxable income. This partially offsets the burden of paying both sides.
- Business expenses reduce both SE tax and income tax. Legitimate business deductions reduce your net self-employment income, which reduces both SE tax and income tax simultaneously — making business expense deductions more valuable for the self-employed than for employees.
- SEP-IRA or Solo 401(k) can dramatically reduce your tax bill. Self-employed individuals can contribute up to 25% of net self-employment earnings to a SEP-IRA, reducing taxable income substantially. A $20,000 SEP contribution can save $5,000–$7,000 in combined taxes. See also income tax calculator.
Advertisement
Frequently Asked Questions
Self-employment tax consists of Social Security (12.4%) and Medicare (2.9%) taxes — totaling 15.3% — that self-employed individuals pay on their net earnings. Employees split this with their employer (each paying 7.65%). When you are self-employed, you pay both halves. SE tax applies to 92.35% of net self-employment income, not 100%.
Generally yes, if you expect to owe more than $1,000 in federal taxes for the year. Quarterly payments are due April 15, June 15, September 15, and January 15. Failing to make adequate estimated payments results in an underpayment penalty. Use our quarterly tax calculator to determine your payment amounts.
Legitimate business expenses that reduce SE tax include: home office (dedicated space), equipment and supplies, business vehicle mileage, professional subscriptions and software, business insurance, marketing and advertising, professional development, and health insurance premiums (deductible above-the-line). Keep receipts and records for all business expenses.
Yes. Self-employed individuals can deduct 100% of health insurance premiums paid for themselves, their spouse, and dependents as an above-the-line deduction on Schedule 1. This reduces federal income tax but not SE tax. The deduction is limited to your net self-employment income for the year.
The standard SE tax rate is 15.3% on net earnings up to the Social Security wage base. Above that limit, only the 2.9% Medicare portion applies. An additional 0.9% Medicare surtax applies on self-employment income above $200,000 (single) or $250,000 (married filing jointly), bringing the top Medicare rate to 3.8%.